15 July 2016
if a person received interest on compensation which is chargeable to tax after deduction of 50% of the amount u/s 57 bt if any expense like legal expense paid to get that compensatiion will also be allowed as deduction u/s 57 as it include a clause where any amt as expense paid for earning such income is deductible provided it should not be capital expenditure.
will legal exp here is capital expenditure?
15 July 2016
Dear Lavina Ghadge
Legal expense in your case if it's directly attributable to earning the income which you've mentioned, then it shall be an allowable expenditure.
15 July 2016
No deduction from interest other than 50%. Additional compensation taxable under capital gain from which legal exps can be claimed as deduction.
CAclubindia
